What is Pirex?
Pirex is a decentralized finance (DeFi) protocol that enhances the utility of Convex Finance's CVX tokens by providing a liquid, vote-locked wrapper through pxCVX and uCVX tokens. Developed by Redacted Cartel, Pirex allows users to participate in Convex's governance and bribe ecosystem while maintaining liquidity and flexibility.
pxCVX is a token that represents vote-locked CVX (vlCVX) in a liquid form. When users deposit CVX into Pirex, the protocol locks the CVX in Convex, converting it into vlCVX with a 16-week lock-up period. pxCVX holders can then claim bribe rewards generated by vlCVX through the Votium integration. These rewards are distributed to pxCVX holders, allowing them to earn while retaining the flexibility to trade or utilize their tokens elsewhere in DeFi.
uCVX operates similarly but with a focus on auto-compounding. When users deposit CVX into the uCVX vault, it locks the CVX into Convex as vlCVX. The vlCVX earns bribe rewards through Votium, but instead of distributing these rewards directly to holders, they are automatically compounded back into more uCVX. This compounding mechanism allows users to grow their holdings over time without needing to actively manage the rewards.
Pirex thus offers a solution for users who want to engage in Convex's ecosystem without losing liquidity or requiring active management of their assets. It combines the benefits of vote-locking in Convex with the flexibility and liquidity necessary for broader DeFi participation.